The 2020 Mid-Year Economic Update_long

Day: June 10, 2007

Channel Data Sharing

In the new research study Facing the Forces of Change: Lead the Way in the Supply Chain," the author found that the demand-driven supply chain philosophy is taking root in the business-to-business supply chains in which wholesaler-distributors play a major role.

Usually, manufacturers only see orders from wholesaler-distributors, and the distributors, in turn, only see orders from their customers; neither party has visibility into the market consumption (true demand) for a product.

The uncertainty and variability caused by a lack of true demand information leads every participant in the supply chain to stockpile extra inventory. It is caused by a combination of poor or inaccurate forecasts, promotional purchases by the channel, and other failures to provide true ...

Case Study: Engage Partners in ERP Transitions


Company Snapshot:

  • Global manufacturer with three Loctite Industrial production facilities in North America
  • 4,000 Loctite Industrial Group employees
  • Adhesives, sealants, and application equipment for OEM and MRO markets

When most distributors and customers hear about a supplier going through an ERP system change, their blood runs cold because, potentially, it can be devastating to business. There are far more stories about bad implementations than there are about good implementations.

When we learned we would be changing our ERP system, we were determined to make it as smooth a transition as possible. Since we sell approximately 95 percent ...

Monthly Wholesale Trade: Sales and Inventories for April 2007

April 2007 sales of merchant wholesalers, except manufacturers'sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $351.9 billion, up 1.3 percent from the revised March level and were up 8.8 percent from the April 2006 level. April sales of durable goods were up 0.8 percent from last month and were up 7.8 percent from a year ago. Compared to last month, sales of hardware, and plumbing and heating equipment and supplies were up 2.7 percent. April sales of nondurable goods were up 1.8 percent from last month and were up 9.7 percent from last year. Compared to last month, sales of petroleum and petroleum products increased 6.7 percent.

Inventories. Total inventories of merchant ...

Commentary: Fine-Tune Your Company’s Value Offering

Defining and selling value is a critical skill set in markets where customers have a range of sourcing options. Yet how well does your company analyze its market position in terms of value? How well are your associates trained in communicating and delivering this key differentiator that keeps you ahead of competitors?

The article on page 4 of this issue explores how manufacturers, distributors and sales representatives view the state of&nbsp ; value-add." It offers some tools to analyze your company's ability to perform extended value activities in key customer segments.

Survey results indicate that value-add definition and communication is just as tough a battle as five years ago. But there seems to be a broader recognition of its importance to staying competitive. ...

MDM News Digest 3711

Private equity firm Audax Group has acquired industrial rubber distributor Lewis Goetz and Company Inc., Pittsburgh, PA. Lewis-Goetz operates from 48 locations throughout the U.S. and Canada. It sells industrial, hydraulic, and metal hose, conveyer belts, gaskets and seals, and related accessories and services. Audax recently purchased UTEX Industries, Inc., Houston, TX, a manufacturer of complex gaskets and highly engineered seals. Lewis-Goetz with recently acquired Goodall Rubber Co. has more than $200 million in annual revenues. More ...


Grainger, Chicago, IL, a $5.9 billion industrial distributor, announced its Lab Safety Supply subsidiary has acquired McFeely's Square Drive ...

U.S. Market Analysis: MRO Pneumatic Products

The industrial product group listed here - MRO Pneumatic Products - represented a market in 2006 of $1.9 billion, according to estimates by Industrial Market Information, Minneapolis. These charges show the top 10 industries, by SIC code, consuming these products and the 2006 end-user consumption of these groups sorted by the nine government market ...

MDM June 10, 2007

This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to ...

The Value of Value-Add

At the May Industrial Supply Association annual meeting in Las Vegas, industry consultant William McCleave presented the results of a survey of ISA members, The Future Impact of Size and Value Content on Industrial Distribution." This article outlines one of the key findings of that report: the importance of value-add in distribution.

How is value-add being defined in distribution today? As noted in these pages before, the term has been used so heavily that it risks losing meaning. At the same time, most wholesale distribution executives agree that market battles ahead will center on how well their companies define and sell value.

In a recent survey of Industrial Supply Association members by consultant William McCleave, most respondents felt that value-add ...

New MDM Audio Conference: Succession Planning for Distributors

Join Brent Grover on Thursday, June 21, 2007 for a 90-minute audio conference, 1 p.m. Eastern.

What's your exit strategy? No matter when or how you plan to leave your business, there are key issues to address now to ensure a smooth transition. Whether you plan to sell or pass the torch to your son, daughter or key employee, this 90-minute audio conference presents the options to consider and fundamental decisions you need to make to have the right pieces in place at the right time.

Join Brent Grover as he shares his unique experience as the former CEO of the paper distribution business his grandfather started, as well as the varied knowledge gained through his current consulting business focused on wholesale distribution ...